Bridgeline Digital, Inc. (NASDAQ:BLIN) announced that its AI‑powered search platform, HawkSearch, has been selected by a national closeout retailer with more than 170 physical stores and a rapidly expanding e‑commerce presence. The retailer cited HawkSearch’s natural‑language search, personalized recommendations, and multi‑site management as key reasons for the switch, replacing a legacy solution that limited filtering and merchandising flexibility.
The win is part of Bridgeline’s broader strategy to shift toward recurring AI‑driven revenue. In the fourth quarter of fiscal 2025, the company reported flat total revenue of $15.4 million, but subscription revenue grew to $12.4 million, reflecting the growing share of its core product line. HawkSearch, which now accounts for over 60 % of total revenue, grew 16 % year‑over‑year to $8.9 million.
CEO Ari Kahn said, “HawkSearch gives retailers the intelligence and control needed to create more effective shopping experiences.” He added that the new partnership demonstrates the platform’s ability to scale across both physical and digital channels, reinforcing the company’s focus on high‑margin subscription contracts.
While the customer acquisition signals momentum for HawkSearch, Bridgeline continues to report net losses and negative cash flow. The company’s Q4 earnings highlighted a 5.26 % after‑hours rise on an EPS beat, followed by a 2.5 % decline the next day, underscoring investor caution around flat revenue and ongoing profitability challenges.
The addition of a large e‑commerce customer strengthens Bridgeline’s position in the competitive marketing‑technology space, where it competes with firms such as Salesforce, Adobe, and HubSpot. The win also aligns with the company’s investment in marketing to accelerate lead generation and shorten sales cycles, a move that could accelerate the adoption of its AI platform across additional verticals.
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